The Dilemma of Indirect Expropriation of Host States and the Right to Regulate in the International Investment Sphere

Authors: Bashayer Al-Mukhaizeem Published date: 15-07-2016 Status: Published

This article examines the situation where a State embraces an investment belonging to a foreigner. How a State can regulate its affairs without harming foreign investors and without being accused of implied expropriation of such investment? Some municipal laws restrict the government's power to expropriate investments indirectly, such as Cambodia's Investment Act 1994.1 Other domestic laws do not constrain the government from doing so. This article examines specific measures in order to determine whether a State creates new legislation to disengage itself from its obligations towards foreign investment, or whether such a rule is promulgated merely to govern internal matters. Keywords: International Investment Law, Indirect Expropriation. –––––––––––––––––––––––––––––––– 1 Art 9 Cambodia Investment Act 1994. See: Lorenz Cotula, Foreign Investment, Law and Sustainable Development: A Handbook on Agriculture and Extractive Industries (London: International Institute for Environment and Development, 2014), 22.

Get access



COPYRIGHT: © The UK Law and Society Association